How many years can a business lose money and still file a Schedule C?
A business that loses money year after year may draw the attention of the IRS; it may question whether this…
My parent is in assisted living. Is a statement from a doctor required in order to deduct the cost of this care?
For the costs of assisted living to be deductible as an itemized medical expense, the resident must be chronically ill.…
I’m having trouble paying my taxes. What interest does the IRS charge on the outstanding amount?
The IRS interest rate on underpayments is set quarterly. For the third quarter of 2020 (July 1 through September 30),…
Filing Amended Returns Electronically
About 3 million Form 1040-X, Amended U.S. Individual Income Tax Return, are filed annually. The IRS announced that Form 1040-X…
DIY Returns Are Up
The IRS reports statistics on its filing season (https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-july-24-2020). Through July 24, 2020, 152,875 income tax returns were filed for…
Charitable Contributions in Exchange for State and Local Tax Credits
Federal law limiting the itemized deduction for state and local taxes to $10,000 ($5,000 for married persons filing separately) prompted…
Statute of Limitations for Superseding Return
The statute of limitations is the period in which the IRS has to audit your return or in which you…
IRS Can’t Change Reimbursement Deadline for Dependent Care FSAs
Dependent care flexible spending accounts (FSAs) set the deadline for submitting requests for reimbursement. For example, a company’s plan may…
IRS Data Book Insights into Audits and Collections
The IRS released the 2019 Data Book (https://www.irs.gov/pub/irs-pdf/p55b.pdf), which is a snapshot of IRS activities for the government’s fiscal year…
Understanding Your Health Care Options for 2021
It may seem that 2021 is a long time from now, but decision-making on your health care coverage for the…